Steak ‘n Shake has begun to see some of its top-line fortunes improve. The legacy burger brand reported Q2 revenues of $61.577 million, ahead of last year’s $57.742 million. And over the first six months of 2023, Steak ‘n Shake recorded $120.064 million, clear of the year-ago figure of $115.495 million.
Additionally, its earnings before income taxes, or profit, rose to $8.634 million. That figure was $3.615 million in Q2 2022. And on a six-month view, Steak ‘n Shake achieved $15.959 million a year after reporting $7.813 million.
Yet the 1934-founded chain’s two-front evolution—from a full-service concept to a quick-service one, as well as a plan to sell corporate units to franchise partners—continues to coincide with closures.
READ MORE: Inside Steak ‘n Shake’s Winding Road Back
Steak ‘n Shake closed eight company restaurants (two were also transitioned) and franchisees shuttered another 18 to bring the brand’s footprint to 482 restaurants: 167 corporate, 177 “franchise partner,” and 138 traditional franchises.
Here’s how it’s tracked:
Company operated:
- December 31, 2021: 199
- March 31, 2022: 184
- December 31, 2022: 177
- March 31, 2023: 172
- June 30, 2023: 167
Franchise partner
- December 31, 2021: 159
- March 31, 2022: 171
- December 31, 2022: 175
- March 31, 2023: 178
- June 30, 2023: 177
Traditional franchise
- December 31, 2021: 178
- March 31, 2022: 179
- December 31, 2022: 154
- March 31, 2023: 143
- June 30, 2023: 138
Yearly total:
- Current: 482
- 2022: 506
- 2021: 536
- 2020: 556
- 2019: 610
- 2018: 626
- 2017: 615
- 2016: 590
- 2015: 561
- 2014: 540
- 2013: 519
- 2012: 497
- 2011: 489
- 2010: 483
- 2009: 485
- 2008: 498
As of June 30, thirty of Steak ‘n Shake’s 167 company-run units were also closed. The brand said it’s contracted to sell five of that pool. An additional 15 closed units are listed with brokers for lease or sale. Steak ‘n Shake plans to refranchise the remaining closed company-operated locations.
During the first six months of 2023, it’s reopened five stores and sold four properties as well—all were closed as of December 31, 2022.
The sale of those four Steak ‘n Shakes turned a gain of $4,414.
Biglari Holdings’ franchise royalties and fees generated by its traditional franchising business were $4,125 during Q2 as compared to $5,237 during in the year-ago period. Across six months, the difference was $8,383 versus $10,383. The decrease was due to fewer stores: There were 138 traditional Steak ‘n Shake units this June 30 compared to 166 on June 30 of last year.
Steak ‘n Shake’s franchise-partner transition is the continuous of its 2018-introduced plan to sell corporate units to single-unit operators for $10,000 upfront. Steak ‘n Shake constructs the site, pays for equipment, and assesses a fee of up to 15 percent of sales as well as 50 percent of profits. The overarching goal, the company said previously, was “to harness the power of entrepreneurs and to create a company of owners.”
The brand transitioned to a kiosk counter-service operation coming out of the pandemic’s depths. It took about $50 million in capital outlay to do so, everything from interior remodels to a new point-of-sale to self-order kiosks.